SOURCING at MAGIC - Country Guide: USA

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COUNTRY GUIDE:

USA


LEARN WHY MADE IN AMERICA IS STILL A SOURCE OF PRIDE. SOURCING at MAGIC provides access to the world’s leading suppliers of apparel production and one-stop shopping for all sourcing needs, featuring the latest fashion technology, as well as ethical and sustainable manufacturing sources. Here we highlight the United States for its outstanding apparel and textile manufacturing expertise.

UNITED STATES The United States is seeing a resurgence in U.S. manufacturing because of its technological expertise and increased effort to reduce the fashion industry’s carbon footprint.

• Fifth in the world in textile exports (US$ 11 billion) 1 • Combined value of textile and apparel exports 2019:

US$ 22.9 billion

in 2019, up 20% from 2010 2

• Textile and apparel industry sector responsible for “341,300 jobs 3 • Apparel market estimated to reach nearly $400 million by 2025 3 1 Statista 2 US DOC Office of Textiles and Apparel 3 SelectUSA


An Organized Approach The United States apparel and textile industry is also committed to working together to create a nation-wide ecosystem to promote manufacturing and export. There are many U.S. government agencies and not-for-profit organizations dedicated to nurturing the nation’s apparel manufacturing capabilities. According to Will Duncan the Executive Director of SEAMS (The Association Information of the U.S. Sewn Products Industry), his organization has more than 230 members, including brands, retailers, suppliers, knitters, equipment and software suppliers, and more. The organization’s website offers the SEAMS Power Search tool, essentially a directory of U.S.-based manufacturers to help create connections between brands and makers. “Our members were very active during COVID, and many of the businesses pivoted to producing essential PPE products for front-line workers in record time. No other industry could have reacted that quickly,” says Duncan. The heroic actions of the industry speak volumes to the agility and tenacity of American manufacturing. Duncan points out that brands that are interested in manufacturing in the United States, but who may be scared off by higher costs, need to keep a few things in mind.

• Focus on creating the highest profit margin, not just finding the lowest cost.

• Production can happen in the United States in a manner of

weeks, as opposed to the months of off-shore facilities. That slower speed to market can result in stockouts and missed sales opportunities, not to mention inventory that’s not moving taking up space in warehouses and eventually being marked down.


An Organized Approach (Continued) United States Department of Commerce International Trade Administration: offers information from textiles, apparel, and sporting goods industry specialists to enhance global competitiveness, expand market access, and increase exports. The United States aligned partners include NCTO, SEAMS, and Reshoring Initiative. Council of Fashion Designers of America: offers an open-access production directory of over 300 U.S. fashion manufacturers, and sponsors incubator programs for young designers and brands.


Bringing Manufacturing Back to the U.S. • Favorable trade regulations (including Free Trade Agreements with 20 nations) • Longstanding manufacturing expertise and history • Access to advanced technology • Access to capital • Skilled workforce • Reliable infrastructure • Fair labor practices • Growing sustainability awareness and regulations

Production and Manufacturing Specialties • Cotton: Produces 20 million bales of cotton yearly, about

US$7 billion in total value, • 35 percent of global cotton exports • Yarn: $4.5 billion exported • Nonwovens: Disposable and durable fabrics used for hygiene medical purposes, camping and outdoor market, as well as sportswear and outerwear. • Protective apparel: Primarily for the manufacturing sector • Fashion Apparel: From couture and custom clothing, sportswear, activewear, outerwear, denim, accessories, and much more.

Moving Things Along The United States offers a stable, reliable supply chain, and the federal government is making deep investments into the nation’s infrastructure.

• More than 100 ports • An estimated coastline length of 95,471 miles • 50 cargo airports across the U.S. and its territories • Freight railroads moving 1.7 billion tons across nearly

140,000-miles of privately owned infrastructure, running through 49 states

“Made in U.S.A.” means pride in workmanship, high quality, and innovative practices. For domestic businesses it can also mean a lower carbon footprint and better control. SOURCING at MAGIC is pleased to present some of the top made in the U.S. manufacturers. Register now to source from them digitally at SOURCING at MAGIC Online.


Bringing Manufacturing Back to the U.S. The Reshoring Initiative, an organization focused on bringing manufacturing jobs back to the United States, offers a tool on its site which calculates the Total Cost of Ownership. This free tool can help a brand sort out “overhead, balance sheet, risks, corporate strategy and other external and internal business considerations — to determine the true total cost of ownership. Using this information, companies can better evaluate sourcing, identify alternatives and even make a case when selling against offshore competitors.” Reshoring Initiative’s Founder, Harry Moser points out that wages are going up everywhere, particularly in China, where they have risen as much as 10% to 15% per year. “Just like here, their kids want to go to university to be businessmen and artists, not work in factories like their parents. Before long they are also going to lack a skilled workforce.” Moser also points out that American consumers want to buy Made in USA products and say that they will pay as much as 15% more for them. Retailers could encourage sales by clearly identifying domestically sourced product in their stores sales by clearly identifying domestically sourced product in their stores.

On January 25, 2021, President Joe Biden signed Executive Order 14005, launching a whole-of-government initiative to strengthen the use of federal procurement to support American manufacturing, creating the Made in America office within the White House Office of Management and Budget. As spelled out on the office’s website, the Build America, Buy America Act requires that all of the iron, steel, manufactured products, and construction materials used in infrastructure projects are produced in the United States. Interested manufacturers can follow a link to the MadeinAmerica.gov site to register to become a federal contractor through the Small Business Administration, register at the System for Award Management (SAM), or connect with government agencies via the General Services Administration Schedules program.


SOURCING at MAGIC SOURCING at MAGIC is a domestic and international gathering of manufacturers, suppliers and service providers from apparel and footwear manufacturing, to textiles, materials, components, supply chain, and technology solutions – both in-person and online.

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